BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 856
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          SENATE THIRD READING
          SB 856 (Budget and Fiscal Review Committee)
          As Amended  October 7, 2010
          2/3 vote. Urgency 

          SENATE VOTE  :Vote not relevant  
           
           SUMMARY  : Contains necessary statutory and technical changes to  
          implement changes to the Budget Act of 2010.  Specifically,  this  
          bill  :

          1)Increases the fee on Enterprise Zones from $10 to $15 in order  
            to cover the full cost of administering the Enterprise Zone  
            Program.  

          2)Restricts the Department of Financing from allocating funds  
            appropriated for the Citizens Redistricting Commission until:

             a)   The State Auditor has randomly drawn names of eight  
               individuals who shall serve on the Commission pursuant to  
               law; and,

             b)   Thirty day's after submission of their intent to expend  
               those funds.  

          3)Adds a requirement to the existing statutorily required 2013  
            audit of the Bureau of Private Post-secondary Education to  
            review the bureau's staffing level and expertise in relation  
            to their statutory responsibilities.

          4)Authorizes the healing arts boards under the Department of  
            Consumer Affairs, including the Dental and Medical Boards of  
            California, to employ individuals, other than peace officers,  
            to perform investigative services and to serve as experts.

          5)Requires the Department of Finance to provide 30 day  
            notification to the Joint Legislative Budget Committee prior  
            to finalizing a contract for the BreEZe project (the  
            integrated enterprise-wide enforcement and licensing system  
            described in the department's strategic plan). 

          6)Requires the Department of Consumer Affairs to report to the  
            Chair of the Joint Legislative Budget Committee on whether the  
            licensing positions for the healing arts boards remain  








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            necessary after implementation of the project.

          7)Forgives a $15 million loan made to the San Diego National  
            Sports Training Foundation for construction of an Olympic  
            Training Facility.  The lien on the facility was removed in  
            the 1998 budget, and the Foundation (a non-profit  
            organization) has no ability to repay the loan.  

          8)Reclassifies the Tax Credit Allocation Fee Account to place it  
            in the correct fund classification.  

          9)Increases the authorized amount the State Treasurer's Office  
            may collect from the Local Agency Investment Fund (LAIF) to  
            allow them to cover their full administrative costs.  

          10)Revised the Prompt Payment Act to provide uniformity to how  
            the State handles payments and penalties for late payments.   
            It specifies that state agencies have to pay refunds or other  
            undisputed payments due to individuals within 45 days after  
            receipt of a notice of refund due.  It also provides  
            uniformity in the penalty for late payments, generally at a  
            rate of 10% above the US Prime Rate on June 30 of the prior  
            fiscal year.

          11)Allows the State Treasurer's Office to redeem matured bonds  
            and coupons that are 10 years or more past their call date  
            when presented for payment by the bondholder.  

          12)Eliminates the practice of the State providing funds to  
            locals to make-up the difference between new Vehicle License  
            Fees on trailers as compared to the old calculation.

          13)Authorizes a county, city, city and county, or special  
            district to charge prospective employees or volunteers at  
            parks, playgrounds, recreational centers, or beaches for the  
            costs associated with the existing screening requirement.

          14)Authorizes specific entities to request that Commission on  
            State Mandates adopt a new test claim decision to supersede a  
            previously adopted test claim. It would authorize the  
            commission to adopt a new test claim decision only upon a  
            showing that the state's liability for the previously adopted  
            test claim decision has been modified based on a subsequent  
            change in law.








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          15)Recasts the existing requirements regarding the posting of  
            agendas and the description of items to be discussed at  
            meetings of legislative bodies of local agencies as best  
            practices that could, at the discretion of the legislative  
            body, be used to implement the constitutional provisions  
            regarding access to information.

          16)Eliminates the obsolete section of code regarding the  
            Manufacturing Technology Program, which has not been in  
            existence for years.

          17)Authorizes the Department of Industrial Relations to enter  
            into an agreement with Employment Development Department to  
            collect penalties and wage assessments from employers, as part  
            of the Automated Collection Enhancement System implementation.  
            Requires employers, beginning with the first calendar quarter  
            of 2011, to file with the Director of the Employment  
            Development Department a quarterly return of paid unemployment  
            insurance taxes. Eliminates the requirement that an employer  
            file an annual reconciliation form with the Director beginning  
            in calendar year 2012. 

          18)Eliminates the continuous appropriation for the  
            Apprenticeship Training Contribution Fund and instead  
            specifies that all money in the fund be used for  
            apprenticeship training and to pay the expenses of the  
            Division of Apprenticeship Standards, under the Department of  
            Industrial Relations. 

          19)Revises the method for fee payment by state agencies to the  
            State Public Works Enforcement Fund, a special fund  
            continuously appropriated for the purposes of the Department  
            of Industrial Relations' enforcement of prevailing wage  
            requirements applicable to public works.  

          20)       Extends from April 3, 2011 to September 3, 2011, the  
            time period within which the Employment Development Department  
            is required to implement changes related to the establishment  
            of unemployment compensation benefit claims under the  
            Alternative Base Period Program. 

          21) Increases the fee for a general liquor license by 15%, from  
            $12,000 to $13,800 and adds an annual adjustment per the  








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            Consumer Price Index.  The proposed fee adjustment is  
            projected to generate increased revenue of $788,400 to address  
            the Alcoholic Beverage Control Fund's structural deficit.

          22)       Increases Catering and Event Authorization fees from  
            $10 to $25. Upon full implementation, the fee increases would  
            generate an estimated $256,500 in new revenues to address the  
            Alcoholic Beverage Control Fund's structural deficit.

          23) Allows the Department of Justice to continue to share crime  
            law enforcement data with the Western States Information  
            Network, which is the regional program for the sharing of law  
            enforcement databases for Alaska, California, Hawaii, Oregon,  
            and Washington. 

          24)       Captures $13.7 million in General Fund savings in  
            2009-10 resulting from fee revenue that now supports the  
            state's forensic labs AB 3 X8 (Committee on Budget), Chapter  
            3, Statutes of 2009-2010 8th Extraordinary Session.

          25)       Provides $30 million from the Indian Gaming Special  
            Distribution Fund to provide grants to local government  
            agencies impacted by tribal gaming.

          26)       Allows for the Franchise Tax Board to provide social  
            security numbers to CalPERS so they can begin receiving  
            federal reimbursement funds on behalf of their members.   
            CalPERS has been approved to receive federal funds to assist  
            in offsetting the cost of early retiree reinsurance costs and  
            their dependents per the Early Retiree Reinsurance Program. 

          27)Specifies that the Imperial Irrigation District (IID) can  
            fulfill its reserve account requirements under an existing  
            loan guarantee with funds held in the Imperial Irrigation  
            District Infrastructure Guarantee Trust Account. Additionally,  
            this bill requires that the California Infrastructure Bank  
            (I-Bank) loan guarantee for IID borrowing for water  
            conservation improvements be initiated if funds due to be  
            transferred to IID from San Diego County Water District are  
            reduced, eliminated or delayed.

          28)Authorizes the Technology Services Receiving Fund (TSRF) to  
            receive revenues for services rendered by the office of the  
            Office of the Chief Information Officer (OCIO) and allows OCIO  








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            to collect payments from public agencies for services  
            requested from, rather than contracted for, the OCIO.   
            Additionally, this bill revises the conditions used to  
            determine whether a balance remains in the TSRF at the end of  
            a fiscal year to limit the amount that is used to determine a  
            reduction in billing rates.

          29)Requires that if a proposed state service contract contains  
            an information technology component that would normally be  
            subject to oversight by the State Chief Information Officer,  
            it shall be subject to review, approval, and oversight by the  
            State Chief Information Officer.

          30) Exempts, until January 1, 2012, institutions that offer  
            flight instruction or an institution that offer Federal  
            Aviation Administration certified educational programs in  
            aircraft maintenance from filing applications for approval to  
            operate.

          31)Urgency Clause.  Declares this bill take effect immediately  
            as an urgency statute.


           Analysis Prepared by  :   Sara C. Bachez / BUDGET / (916) 319-2099

                                                                FN: 0007191